Posted on Thu, May 10, 2012
College Planning Essentials for Rising Seniors
As your junior year in high school comes to a close, you are probably getting excited (and nervous!) about your senior year. Spending time with close friends, senior prom, and graduating will have great payoff. But with all this excitement comes a lot of stress – the college application process. Remember, it is never too early to start planning for college and if you haven’t already, now is the time. Use this list of advice to help you stay on track this summer.
Prepare for the SAT
You may have already taken the SAT, but if you aren’t happy with your scores, you can take it again. How much time did you spend studying for the exam? Practicing for this test prepares you for what to expect and teaches you to use your time efficiently. There are many free tools online and at your local library to help you study. Start at sat.collegeboard.org/practice. Just a few points could mean the difference between receiving a scholarship and not receiving one as SAT scores are a major factor many colleges consider when awarding merit based aid.
Think about your career interests
You may have heard that going to college is a time for you to explore your personal interests and to decide what you want to do. But with college costs on the rise, it may be best to get started on this step before you decide where to apply and enroll. Having an honest idea of what you are likely to make after graduation can help you make a wise decision about how much is okay to borrow for college and what your return on investment will be.
Furthermore, going into college with an idea of what you want to pursue can mean it takes you less time to graduate and can save you a lot of money. Get started exploring careers and learn about starting salaries in your fields of choice at the Rhode Island Department of Labor &Training’s website at www.dlt.ri.gov/lmi/jobseeker.htm.
Start investigating schools
Find out more about colleges that interest you. In addition to searching online and requesting information from colleges, go to the college campuses, meet with financial aid officers, and get in on a campus tour. If classes are in session, ask an admissions officer if you can sit in on a few. On your tour, stop a student or two and ask about their opinion of the college. What do they like most about the school? What do they like least? Not sure where to start? Visit the College Planning Center of Rhode Island’s website at www.collegeplanningcenter.org and view of list of factors to consider during your college search.
Discuss your college budget with mom & dad
Before you get your hopes set on the perfect school, have an earnest conversation with your parents about what is affordable for your family. Remember, the sticker price of a college isn’t necessarily what you will pay to go there. The Consumer Financial Protection Bureau offers a financial aid comparison tool at www.consumerfinance.gov/payingforcollege that will help you determine the net cost of going to a particular school. Colleges also provide a net price calculator to help you get an idea of the average financial aid offer. Use these tools during your conversation.
Get a summer job
And more importantly, don’t spend every penny you make! Putting away hundreds, or even thousands, of dollars from a summer job can significantly reduce the amount you need to borrow for college. Savings from a summer job can help you fund costs like books, personal expenses, or even tuition & fees. When looking at the high sticker price of a college education, it may be easy to think that a few hundred dollars won’t make a difference. But it will! Save, save, save!
Work on your college essay
Start to think about what you want to write about. View example college essay questions on line. The essay is your chance to let your personality shine and tell the college something they don’t know about you through your application. Remember to make your story unique and to use your personal voice. Proofread and edit, again and again. Don’t let another student get your spot because of a typo or spelling error on your essay.
For more college planning information or to make a free appointment with a college planning expert, visit www.collegeplanningcenter.org. At the College Planning Center of Rhode Island, you can receive free guidance on college selection, applications, essays, scholarships searches and financial aid. The College Planning Center of Rhode Island is a free service of Rhode Island Student Loan Authority, a non-profit state authority that has been providing higher education solutions to Rhode Island families since 1981.
Posted on Tue, May 08, 2012
Part I of this series encouraged students to borrow only what they need and keep their borrowing in line with their career choice. Below are some additional techniques to help students minimize the amount they borrow for college. Some of these require a lot of foresight and need to be done prior to applying for college. As with the tips in Part I, these tips may require you to make some sacrifices - but these short term compromises will have a very long term payoff.
Earn college credit while in high school.
Does your high school allow you to enroll in courses at a local college while earning your high school degree? Some high schools offer these programs, which allow you to earn both college and high school credits at the same time. This could potentially mean it will take you less time to graduate from college. If this option isn't available to you, keep in mind
many colleges also accept certain test scores on AP exams for college credit. Look into each individual college's policy. By earning credits before you enroll, it can potentially reduce the amount of time it will take to finish your degree and therefore the amount you may need to borrow.
Enroll at a community college for your first two years.
If you are planning on pursuing a bachelor's degree or higher, you may want to consider enrolling at a community college for your first two years, especially if you are unsure of what you want to study or what career you aim to pursue. Some students don't find this option as glamorous as perhaps, living in the big city, or attending the state flagship university, but community colleges provide great value. Community colleges are typically much less expensive than public or private four year schools. However, before you pursue this option, make sure you understand which credits can be transferred to other schools and which schools will accept them before you make your final decision.
Fill out the FAFSA by your school’s deadline.
In order to make sure you receive all of the financial aid you are eligible for, including federal and institutional grants (“free money”), make sure you complete your FAFSA and any other required financial aid forms by the school’s specified deadline. Missing a deadline could mean you miss out of opportunities to receive free money or cheaper loans.
Apply for scholarships.
Scholarships are not only available through your school. Private scholarships are available to just about every type of student. Local scholarships tend to be smaller but are a lot easier to get. A few scholarships can add up to pay for books and living expenses and can significantly reduce your borrowing needs. Before you borrow, may sure you explore your free money options first. Start your search here.
Budget for a lower cost of living.
A good way to reduce the amount you need to borrow is to create a monthly budget. Be realistic. Remember to live like a college student now, so you don't have to after you graduate.
Spend responsibly.
A slice of pizza here, cup of coffee there? How can this really make an impact on your borrowing? Take a look at the chart below.
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Item
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Frequency
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Cost Per
Unit
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Monthly
Cost
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Annual
Cost
|
|
Coffee
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5 x a week
|
$3
|
$60
|
$720
|
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Takeout/Pizza
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4 x a month
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$15
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$60
|
$720
|
|
Cigarettes
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4 packs a week
|
$8
|
$128
|
$1,536
|
|
Vending machine snack
|
3 x a week
|
$1
|
$12
|
$144
|
| |
Total
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$260
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$3120
|
| |
|
|
|
Get a part time or summer job.
Work part time during the school year and summer and use your earnings to pay for college costs, rather than spending them on clothes, gadgets or entertainment. Just remember, working part-time can be good for you, but working full time can sometimes be too much. If you aren't able to balance your studies and job, it could mean you are unable to finish school on time and need to pay for an extra year of tuition, and borrow more. Try not to work more than 10-25 hours a week if you are full time student.
Be wise with your credit cards.
Practicing responsibility and discipline with credit cards from the start is vital to establishing good credit and avoiding a heavy debt load post-graduation. Never use your credit card if you don't think you can pay off the balance quickly. Your credit card is not an additional source of income! This is one of the most important things to remember when you are in college. You may think putting spring break on your card is a good idea now, but when you ending paying back $4,000 instead of $2,000 after credit card interest, you may think again. Only use your credit card when necessary and pay your entire credit card balance off each month to avoid interest charges. Learn more about being smart with your credit card.
Posted on Sat, May 05, 2012
It's no big secret that student loan debt is getting out of hand for some. The average student graduates with more than $25,000 in debt. But there are ways to minimize your debt, and limit the amount you borrow for school. The smart borrowing techniques listed below can help you. Yes, these tips may require you to make some sacrifices - but these short term comprimises will have a very long term payoff.
What amount is the “right” amount to borrow for college?
This is a difficult question students & parents need to face before making an enrollment decision. While many students are eager to sign whatever it takes to go to their
dream school, they often don’t understand how much it will cost them after they graduate. Others decide if they need to borrow for college, they just won’t go. What is the
right choice?
The reality is borrowing for college isn’t always bad - as long as it is done responsibly. College graduates earn much more than high school graduates so college is a good investment. But families should be careful not to borrow outside their means. Think about your return on investment.
Only borrow what you absolutely need.
You don’t need to borrow the full amount listed on your financial aid award letter. It is tempting to borrow a little extra for something you want but don’t actually need (say a new computer, when you can use the campus computer lab). When you borrow money, you pay it back with interest, increasing your total costs. A good rule of thumb is to only borrow what you absolutely need and no more.
Don’t ignore interest.
When you borrow, you pay back your loan with interest. It is easy to underestimate how much interest you will pay over the course of your repayment period. Use our loan repayment calculator to estimate your monthly payments and to see how much you will pay in interest on your loans.
How much will you earn?
Before you borrow, do your research on entry level salaries in your field of choice (The Bureau of Labor Statistics web site is a great place to start: www.bls.gov). Will you be able to afford your monthly payments with the salary you will make? Remember to account for all four years
of your education when estimating your total borrowing needs. Too many students have a “borrow now, deal later” attitude that ends up getting them into trouble.
How will your education debt affect your future goals?
When deciding between two schools, you may find you want to go to one more, but it will mean you have to borrow a lot more. Think about how that will affect your ability to reach your future goals. Will you be able to afford to reach your goals with a higher student loan
payment?
Posted on Wed, May 02, 2012
If you turn on the news, you are likely to hear about the pending increase of subsidized Stafford loan rates if Congress doesn't act. Rates, currently set at 3.4%, are set to double on July 1 to 6.8% - and without intervention - it will happen.
Stafford loans are a student's first choice when choosing to borrow for college. Not all students qualify for the subsidized version, under which the federal government pays any interest that accrues while the student is in school. To see if you qualify, you must submit the FAFSA and apply for financial aid at your college. If you are eligible, the subsidized Stafford loan will be included in your financial aid award letter.
Nothing will change for students who only qualify for the unsubsidized Stafford loans. Rates are currently set at 6.8% and that is where they are expected to stay.
However, many have raised the question about the fairness of rates doubling on Stafford loans for the neediest students. These families, in many cases, are already struggling to fund a college education. Repaying that education can cost the student about $5,000 more after graduation if he or she borrows the maximum subsidized Stafford limit of $23,000 under the 6.8% interest rate vs. the 3.4% interest rate.
The good news is that no one actually wants to let these rate increases happen for students. The bad news - Congress can't seem to agree on how to fund this costly interest rate reduction. Until bipartisan support is reached, the clock is ticking and students are rightly nervous about how this change will affect them.
Of course, Stafford loans have annual limits, and many students still need other sources of funding to fully meet college costs. Learn more about your other college loan options, come up with a plan for meeting college costs, or if you are a Rhode Islander or considering going to school in Rhode Island, learn more a low cost state-based Rhode Island Family Education Loan with RI Student Loan Authority.
As always, for more help with college planning, or to get assistance understanding your financial aid award letter or federal college loan options, make an appointment with the College Planning Center of Rhode Island.
Posted on Sat, Apr 21, 2012
Helping your child find colleges represents a turning point. In many cases, your son or daughter will be leaving home for the first time, setting off into academia as a young adult.
And whether you select colleges based on academic record, admission policies, cost or some other factor, be prepared for a lively debate – if your child is like many, he or she has built up an image of school life that you may need to temper with a dose of reality.
But even if you disagree at the start of your discussion, you can narrow the list of prospective schools by considering vital criteria, including these three:
- Cost. Paying for college is a challenge many parents face. Perhaps you set up a college fund when your child was a baby or used a 529 Plan to lock in the tuition rate; perhaps you invested with college in mind or are counting on scholarships. Whatever the case, don’t let cost dissuade you from investigating a school. You can research financial aid that can help foot the bills. If you’re considering student loans, you can find resources that give students the foundation of financial literacy. Investigate the net
price calcuatlor at individual schools to get an idea of what your family might need to pay at that particular school. Don't be scared away by the "sticker price."
- Admissions policy. One of the best-kept secrets of college admissions: It’s not all about the grades. Certainly a healthy GPA and good SAT/ACT scores are attractive to recruiters and admissions officers, but colleges and universities often take a more holistic view. Your child’s volunteer work, internships, awards, letters of recommendation or compelling essay can tilt the scales in her favor.
- Campus life. Athletics, diversity, activities and even the size of the school are examples of non-academic factors that contribute to a successful college career. Especially as a freshman, your son or daughter should feel comfortable and secure at school.
A closer look
Once you’ve developed a list of select colleges, give each school a closer look. Ask about visits or guided tours that take students and parents into classrooms, dorms and other areas. Seminars, tutorials and events can connect you with representatives from several schools.
Start now
Whether it’s paying for college or choosing a major, you and your child have decisions to make. But you’re not alone. As Rhode Island residents, you can take advantage of a remarkable free resource dedicated to helping you find colleges that match your child’s goals and meet your expectations.
Posted on Wed, Apr 18, 2012
Getting into college is something that weighs heavily on the minds of many high school students. The SAT test is one factor of getting into the college of your choice. Each college or university places the weight of the SAT differently with the more prestigious schools looking closely at your SAT score. Preparing for the SAT can be stressful but there are some things you can do to reduce the stress and get the best score possible for you.
There are many free resources and tools that will help you prepare for the SAT.
Number2 -- This site allows you completely free access to study tools and practice SAT tests. The site offers stats to show how much you've studied, how your scores have improved and more.
ProProfs -- This website claims to be the most comprehensive site to help you prepare for the SAT. The site offers free all of the SAT prep study guides and tests.
College Board -- Many free tests and study materials for you to prepare. This site takes into account how you've answered and offers pinpointed techniques for you to follow to improve. The site also gives you details on how the tests work such as answering the question of "Can a calculator be used?"
Library -- Visit your local library to check out SAT prep books. You can check out these books free of charge and use them to study and prepare.
High School -- Your high school should have a list of tutoring or classes available for you. Speak to your counselor for options available to you. Depending on your area, you may have to pay a small fee for some tutoring. If you live in Rhode Island, your high school may offer a free class provided by the College Planning Center.
The SAT is usually taken during a student's Junior or Senior year of high school. The SAT is offered several times a year and all over the United States. Depending on where you live, you may be required to travel to another location to take the SAT. Visit
College Board and select your state to see a list of available testing dates and times. You can register and pay online for the test of your choice. You can take each test twice and the maximum score for each section is 800, however the average score is in the low 500's for each section according to the
Princeton Review.
Take the time to study and review the free assistance available to you to make the best of your SAT experience.
Posted on Sun, Apr 15, 2012
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| Image: David Castillo Dominici / FreeDigitalPhotos.net |
College is expensive and ideally the financial planning for college should start early but life does not always work out the way it is planned. It is never too late to understand the basics of what the college cost will be and how a family can actually afford a great school. The key is research and having important conversations with your child before the first application to a school is sent.
There is a lot of paperwork that is required to attend any college and some seem to have more than most. Your child will have guidance from his or her high school in this process and chances are you can attend a workshop or two to help you understand this process.
But before you begin, you need to first sit down with your child and discuss possible career choices. The career choice will help you determine the best course of action on how to pay for college. Once you have determined a tentative career path...have an earnest conversation with your child about what is affordable for your family. Make sure your child understands what the monthly payments will be on any student loans he/she borrows and help them understand what a typically starting and mid-level salary are in the field of their choice.
Once you have sat down and discussed the family finances with your child, visit some school websites that offer a major that corresponds with your child's desired career path and use a financial aid tool called a net price calculator located at the school's financial aid website. Try one out for University of Rhode Island, Rhode Island College, or Bryant University for example. It will give you a rough estimate of the cost at that particular school for an average family.
With an estimated cost of school in mind, you can now start working on how to pay for college. There are a vast number of resources available to you. You may want to visit The College Planning Center and review the Financial Aid 101 tutorial. You can also take a moment to read the different options for financial aid. It can be surprising to learn that many of the top priced schools are within reach if you plan accordingly and receive the right financial aid package.
College cost often deters many students and parents but it should not. There is help available and there are many different ways to pay for school. It can be challenging but if you take your time and research the various options for financial aid, it can become a streamlined process. If you are searching for how to pay for college for your child...visit The College Planning Center or download RISLA's Ultimate Guide to Paying for College for step-by step instructions on how to pay for college or to learn more about the options available to you.
Posted on Fri, Apr 13, 2012
Finding a way to pay for college can be a conundrum with no easy answers. For most middle- and lower-income families, loans are going to be an inevitable piece of the puzzle.
Several types of college loans are available: federal, state-based and private.
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| Image: Anusorn P nachol / FreeDigitalPhotos.net |
Federal college loans, which include Perkins, Stafford and PLUS loans, all carry a fixed interest rate but vary in their terms and fees. The Perkins loan is based solely on need, but the other two are available to all U.S. citizens and permanent residents who qualify. To apply, students must fill out a Free Application for Federal Student Aid, or FAFSA. Repayment terms are usually flexible, allowing up to 10 years or more to repay the loan. If you have trouble repaying the loan after you graduate and the grace period expires, you can apply for a hardship deferral or forbearance as well.
State-based loans often are limited to students from the state or those who are attending college in the state. These college loans usually have a fixed rate, and you may find that they’re less costly than even a federal PLUS loan. The Education Finance Council keeps a list of not-for-profit organizations and lenders that offer state-based loans, including the Rhode Island Student Loan Authority and the Massachusetts Educational Financing Authority, for example. These loans usually require a cosigner, and their repayment terms vary according to the lender.
If federal and state loans are not an option or don’t provide enough funding, you can apply for a private loan. These college loans come from for-profit institutions, such as banks or Sallie Mae, and often carry a variable interest rate that will rise and fall with the prime rate or another economic barometer. Because these loans are not fixed, you may someday find yourself with a substantially higher payment than you started with. Private college loans may require a cosigner, and their terms vary widely. They should be your last choice as you decide how to pay for college.
Posted on Thu, Apr 05, 2012
Now that you have received your college financial aid award letter, you may be wondering, "how am I going to pay for this?" Scholarships, even small ones, are a great way of reducing the amount you need to borrow for college. When looking for scholarships in Rhode Island, keep in mind these key places:
- RIScholarships.org - The College Planning
Center's free website of local scholarships. Input your personal attributes and view a list of scholarships you could potentially qualify for. Start your search.
- Your guidance office - It's likely your high school guidance office maintains a binder of local scholarships, some of which may be only available to students from your school. Check with your guidance counselor and make sure they know you are interested and motivated to apply for local scholarships.
- Your local libary - Check the bulletin boards, ask the librarians, search and check out scholarship books. These are all great places to find scholarships.
- Your parent's workplace - Many employers offer small scholarship programs to children of employees. Have mom and dad check with their employers to see if they have a program or know of any family programs.
- Your hometown newspaper - Check for advertisements on local programs. There may also be listings or articles on scholarship programs in your home town. Scan through every issue and make sure to pay attention to deadline dates.
Posted on Mon, Apr 02, 2012
FreemMoney for college comes in two basic forms: grants & scholarships. Free money for college does not need to be paid back, unlike loans, so it is best to maximize your free money before turning elsewhere.
Grants and scholarships are awarded by the federal government, states, institutions of higher education, and private organizations & companies.While you may have missed the deadlines for qualifying for state or institutional aid at this stage in the game, there is still plenty of private free money available so don't get discouraged!
Federal Free Money for College
The Federal Pell Grant and Federal Supplemental Education Opportunity Grant (often referred to as the FSEOG) are the most common federal grant types. These loans are both need based loans, only available to students who can prove financial need. Only the neediest students qualify for FSEOGs.
In order to qualify for a federal student aid grant, you are required to fill of the Free Application for Federal Student Aid (FAFSA). Keep in mind, you should never pay a fee to file the FAFSA. You can file for free at www.fafsa.ed.gov. If you need help, you can make a free appointment with the College Planning Center of Rhode Island.
State Free Money for College
Your state may offer a state grant or scholarship program. In Rhode Island, you must file the FAFSA by March 1 in order to qualify for a Rhode Island State grant but deadlines vary from state to state. Awards also range from state to state so check with your state for details.
Institutional Free Money for College
Your college may offer both grant and scholarship programs. While grants are most often awarded to students who prove financial need (again, you may be required to file the FAFSA and possibly an additional financial aid form required by the school such as the CSS PROFILE or a school form.) Scholarships may be awarded based on need, academics,
talents or some combination. Pay attention to school deadlines for applying for scholarships and grants! May are as early as late fall. You must submit your financial aid materials by the school's deadline to qualify for institutional grants and scholarships, in most cases.
Private Free Money for College
Private money can come in both grants and scholarships but scholarships are more common. There are millions of dollars in scholarships available to students each year just waiting to help you pay for college.
Scholarships are NOT just for straight-A student and off-the-charts athletes. There are scholarships available to students with all types of talents, skills & qualities. For example, do you like to fish? There may be a scholarship out there just waiting for you. Or maybe your parent's workplace offers a scholarship to children of employees.
Search everywhere and talk to everyone when conducting a scholarship search. Remember to search locally. Local scholarship aren't as competitive as national scholarship so they have many less applicants which means you have a better chance of getting the award if you do the work of applying. If you live in RI, you can use RIScholarships.com to start your free, local scholarship search. Otherwise, check out free websites like, www.collegeboard.com to get started on your private scholarship search. Don't forget to check your guidance office, local newspaper and library for other opportunities available to those in your community.
And remember, $500 may not seem like a like in the grand scheme of college costs, but it could mean borrowing $500 less and funding personal expenses or books for the semester! It's worth it!